E3 is just around the corner and you know what that means! Game publishers and developers are prepping all of their new gaming announcements. With no PlayStation 4 announcement expected, a new rumor suggests Sony could be preparing to bet big on cloud gaming.

According to VG247, Sony might "announce a cloud gaming deal with either Gaikai or OnLive at E3, apparently allowing streamed games on PlayStation hardware."

OnLive, as you might be familiar with is cloud-streaming service that uses its hefty backend computers to push PC-quality games to your HDTV, PC or tablet. The beauty to cloud-streaming game services is that it doesn't require powerful hardware on the user's part. It's great, but only if you've got a decent Internet connection.

Gaikai is basically the same thing.

A deal with OnLive or Gaikai would be a major blow to the likes of Valve's Steam PC digital distribution service, which we had hoped would eventually become an option for PS3 gamers after last year's inkling partnership for Portal 2 cross-platform play.

Then again, it'd be a huge win for either of those cloud computing game services because a lot of gamers aren't convinced that cloud-streamed games are worth it, what with latency issues and stuff.

VG247, via PSLS